Spirits company Bacardi is extending its footprint in the US with the billion-dollar acquisition of an eponymous tequila brand. Expansion via takeovers are also on the cards in India, where Future Retail is in talks to buy a supermarket group, and British online pure player Ocado has signed its second international deal. This time in Canada.




Tuesday, 23 January 2018





Hello ,

Spirits company Bacardi is extending its footprint in the US with the billion-dollar acquisition of an eponymous tequila brand. Expansion via takeovers are also on the cards in India, where Future Retail is in talks to buy a supermarket group, and British online pure player Ocado has signed its second international deal. This time in Canada.




USA & Canada


Liquor deal ▪ Rum giant Bacardi will buy the maker of Patrón tequila. The acquisition values the brand at US$ 5.1 billion and offers Bermuda-based Bacardi an opportunity to become the second largest spirits company in the US by market value. Tequila is one of the fastest-growing categories in the spirits industry.



Tech partnership ▪ British online grocer Ocado ramps up its international expansion efforts and has signed an exclusive deal with Canadian supermarket chain Sobeys, which runs over 1,500 stores across the country, to develop online grocery. The two companies aim to construct a warehouse to supply Toronto.



Acquisition targets ▪ Kroger is reportedly considering to buy Utah-based e-commerce business Overstock.com, which sells new and surplus durable goods such as home décor, furniture, bedding and more. Last week, the Cincinnati-based grocer has bid to acquire club-store start-up Boxed.




Europe


Shake-up continues ▪ In its latest effort to cut costs by GBP 1.5 billion, Tesco is set to axe up to 1,700 jobs. Britain's biggest supermarket chain said it would remove HR, compliance and customer service roles. The move comes after around 1,200 head office jobs were cut last summer.



Expansion plans ▪ Romanian supermarket chain Profi will invest over EUR 50 million this year in its network, aiming to reach some 900 stores. Currently, the group operates 700 units. Meanwhile, Swiss retailer Migros is set to extend its in-store pharmacy concept in partnership with wholesale supplier Zur Rose.



Pricing strategy revised ▪ Aldi Süd is trialling an umbrella brand for entry-price food products in Germany and has rebranded products positioned at the lowest price level. The discounter has also rolled out discounts on premium brands for the first time ever, which severely undermines its EDLP policy.




Asia


Indian initiatives ▪ Mumbai-based retailer Future Group is in advanced talks to buy regional chain Foodworld, which operates 36 supermarkets in southern India. The company is also interested in Travel News Services India to expand its presence at airports. Meanwhile, online grocer Bigbasket is set to invest in its farmer supply chain.



Leaving China ▪ E-Mart will entirely exit the Chinese market following the closure of its last outlet in Wuxi City next week. Run by Shinsegae Group, the Korean supermarket chain has been in China for 20 years. It used to have nearly 30 outlets in the country, but only six survived in 2017 due to tepid sales.




Store concepts


Fresh food destination ▪ LZ Retailytics was invited to visit Maxi Ica Stormarknad, a hypermarket operated by Swedish grocery leader Ica Gruppen. Although it is a classic big box market, the focus is on customer service and fresh food. Click here for pictures and a detailed description.



Beauty and jazz ▪ Riley Rose is the lifestyle format of fast fashion chain Forever 21. Its new store in New Jersey, awash with pink hues, combines a diverse mix of edgy beauty and skin care brands. A more rustic outfit is seen at grocery chain Rouses. Its store in New Orleans focuses on local products and Mardi Gras.